Ecommerce: LinkedIn Business Model and Old Power Business Model - Essay Example

Published: 2021-08-15
852 words
4 pages
8 min to read
Middlebury College
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Due to the nature of how LinkedIn is set up as a business, its inclusion in the crowds quadrant is justified in the New Compass model. LinkedIn is in the Crowds quadrant as its core operating model is peer- driven. LinkedIn business model depends on the peer to peer sharing. The social media plat formed is designed for business professionals and career individuals to connect. By using LinkedIn, one is able to build strategic relationships with their peers. Moreover, LinkedIn exemplifies all the values that new power compass model encompass. Once an individual gets a LinkedIn profile account, they can set up the way that they like. The set up process is informal. There are various sections whereby one may opt out in decision making. There is open source collaboration in that individuals can be able to share ideas or potential jobs. Thanks to the new power models that LinkedIn encompasses it is very easy to join. Moreover, the individuals who join LinkedIn are less reluctant to swear allegiance as they do not yet understand how the business model works. Through LinkedIn, one is able to ensure that they give themselves opportunities to empower themselves or enfranchise. LinkedIn allows its members to participate in discussions as it is a self-enabling organization. Moreover, the organization shares its contents to individuals with certain qualifications.

In the Old power business models, a heavy value was placed on trust a loyalty. In the success of any organization, trust is an invaluable asset. However, new power business models can still be successful even without the same reliance on loyalty and trust. Recently, there has been a shift in balance between the old power and the new power. With new power models, there are many individuals who are involved. It may not represent the loyalty that the old power models depend on but there is a high likelihood that some of the many visitors of the business organization, will actually conduct business with the new power model even if it I their first time. Additionally, new power models are open. With the old power models, entry is sometimes restricted. The individuals with the capital tend to guard it jealously. To deal with the lack of loyalty and trust in the new power models, businesses understand that there is need to deploy the new power model values in their businesses. New power models opt for commitment and collaboration as a means to an end. Secondly there are various strategies implemented to ensure that there is a networked governance system in place. A good instance with LinkedIn is the do it yourself ethos. Members who join the social networking platform belief in a certain bias towards the informal. One can write their resumes and share it with their friends. Qualities such as an ability to relate to the everyday individuals, collaboration and communication have enabled many new power model businesses to overpower the more traditional qualities of trust and loyalty that was rooted in old power models.

The shift in power from old power models to new power models also brings changes to traditional advertising. The traditional advertising strategies that old power companies used to use will untimely be abandoned due to competition. Traditionally, old power companies had control over their advertising and made the decisions that they wanted to be portrayed in the media of their choice. With advancement in technology, there is an immense shift in how advertising is undertaken. Currently, the power ha shifted from the producer to the consumer. The consumers are no longer constrained by scarcity of information, choice or access. This is because the consumers have infinite access to information regarding the product at any time anyway and anywhere. There is extreme price transparency in most of the new power models as potential clients share their experiences or the prices that their friends my get. Consumers are able to participate in cheaper deals. Moreover, the use of mass marketing is on the wane. With new power, there is need to orchestrate advertising on some few big moments. Consumers have access to information regarding the issues that are currently happening. When a need to purchase or participate in a social media platform, the consumers is in a position to check for the best prices online, the nearest stores through smartphones.

With new power models, there is need to ensure that advertising is done on a harmonized level. There is need to implement a one brand many channels strategy in that the channel created by the consumer should be used to comprehend all the aspects of the product before it is purchased. Through socializing, most of the consumers using the new power model companies turn to their networks for inspiration, validation and information. It is not wrong for new power organization such as Lyft not to use emergency purchase buttons. New power model organizations comprehend that it is not only about sharing but making the most of the opportunity. Due to fierce competition, new power model organizations have to win in the now. There are no second chances in the peer to peer new power models.

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